RIVERSIDE, CA-GlobeSt.com recently got an exclusive sneak peak at the Riverside office of Lee & Associates‘ fourth quarter 2013 Industrial Market Summary for manufacturing/distribution buildings for the East Valley Market in Southern California’s Inland Empire. The summary, which reports activity and gross absorption exhibiting stabilized market trends, shows absorption in 2013 just under 14.8 million square feet surpassed the figures seen in 2012, and represents the largest amount of square feet absorbed annually in the history of the marketplace.
The report also indicates that investors will be extremely active in the new year as the industrial market in the East Valley is positioned extremely well as it reaps the benefits as a manufacturing and distribution hub.
“This report further indicates that we are well on our way to full recovery,” says Lee & Associates Riverside president David Illsley. “Demand is keeping pace with new supply, vacancy rates remain steady at 5.88% and we expect 2014 to continue on this path of growth and stabilization in the market.”
Gross activity in the fourth quarter was just under 7.8 million square feet, with investment purchases and lease renewals accounting for 34% of the total. The fourth quarter summary, which was prepared by Caroline Payan, director of marketing and research of Lee’s Riverside office, found that the average asking sale prices per square foot increased, and asking lease rates remained stable. Asking sales prices per square foot and asking lease rates are expected to increase steadily during 2014, driven by continued positive absorption.